Bitcoin’s price has attained a significant resistance level of around $12000. Willy Woo, a Leading on-chain analyst, stresses that more than 93.5% of the Bitcoin accounts are under the cost-efficiency price of the purchase rate. This could be the end of profit-booking or the beginning of a mega-bull phase.
How Great Can Bitcoin Prices Takeoff?
There are numerous predictions around the future peaks in Bitcoin [BTC] price. Most recently, Bobby Lee re-affirmed his 500,000 dollar prediction. However, according to Woo, the sky’s the limit.
He emphasized that as the weak-hands begin to drive out cost-efficient prices, the account for the next phase is building. Furthermore, joined with the reduction in sell-side instinct due to the halving, it is clearly in a bullish cycle. Woo notes,
“The bull market really started in April 2019. What’s started recently is the early main bull phase, it’s Q4 2016 all over again, but different dynamics and themes at play.”
The improvements during the final phase of the bull run in 2017 were past anyone’s imagination. The delight in DeFi and the connection in gold acting as positive assistance will replicate those gains.
The Profit Booking Phase
Though, the world is moving through one of the worst downturns of history. At the same time, asset prices together with gold, silver and stocks are swarming. The doubt in the economy is causing opinions of weak hands in general. Saikat Chatterjee, the senior correspondent at Thoman Reuters, notes in a social media post,
“Average holding periods for investors, already on a downturn, have fallen more in recent months as the unprecedented stimulus has driven a wedge between market prices and economic reality.”
The Federal Reserve balance sheet has increased at the same rate as the expansion of prices in the S&P 500 index. With this situation, the tendency to book profits increases significantly. The fall in the amount of gold and Bitcoin in all likelihood extends these views. The rise of bitcoin in the last four weeks is 27.32%, and the preliminary surge from $3800 above $9000. Philip Gradwell, the Chief Economist at Chainalysis, finds that,
“Price is facing pressure as holders take profits, sending more bitcoin at a 25%+ USD gain than since the 2017 bull market”.
Mati Greenspan, leading financial analyst and founder of Quantum Economics, also pointed out that the fear and greed index is also peaking.
Preferably, if the markets can observe the selling-pressure and obstacle past the direct resistances, the bull phase, as Woo proposes above, would continue.
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